Fortrea (NASDAQ:FTRE) Releases Earnings Results, Misses Estimates By $0.07 EPS

Fortrea (NASDAQ:FTRE) announced its earnings results on Thursday. The company reported $0.09 EPS for the quarter, missing analysts’ consensus estimates of $0.16 by ($0.07), FiscalAI reports. Fortrea had a negative net margin of 36.77% and a positive return on equity of 5.64%. The business had revenue of $660.50 million during the quarter, compared to analyst estimates of $665.22 million.

Here are the key takeaways from Fortrea’s conference call:

• Fortrea delivered Q4 and full‑year 2025 results in line with guidance, reporting full‑year revenue of $2,723.4 million and adjusted EBITDA of $189.9 million, which management says validates their operating execution.
• The company generated positive Q4 and full‑year operating and free cash flow, improved DSO to 16 days, repaid approximately $76 million of senior secured notes in Q4, and finished the quarter with available liquidity in excess of $600 million.
• Fortrea exceeded its cost‑savings goals, delivering roughly $153 million in gross and $93 million in net savings for 2025 and is targeting incremental $70–$80 million gross (and $40–$50M net) savings in 2026 to help margin recovery.
• Commercial momentum improved late in 2025 with Q4 book‑to‑bill of 1.14x (TTM 1.02x), notable new wins including a long‑term clinical pharmacology partnership with a top‑5 pharma, and increased biotech RFP flow and full‑service opportunity mix.
• Near‑term risks remain from continued FSP headwinds and variability in pass‑through revenue (driven by episodic large clinical pharmacology studies), plus customer concentration (top 10 customers = 56.8% of 2025 revenue), which could pressure revenue and margins.

Fortrea Price Performance

FTRE stock traded up $0.46 on Thursday, reaching $10.80. 2,868,942 shares of the company’s stock were exchanged, compared to its average volume of 1,959,941. The stock has a fifty day moving average of $15.28 and a 200-day moving average of $12.28. The firm has a market cap of $997.92 million, a PE ratio of -0.96, a P/E/G ratio of 0.30 and a beta of 1.59. The company has a quick ratio of 1.00, a current ratio of 1.00 and a debt-to-equity ratio of 1.81. Fortrea has a twelve month low of $3.97 and a twelve month high of $18.67.

Hedge Funds Weigh In On Fortrea

Institutional investors and hedge funds have recently made changes to their positions in the stock. Toronto Dominion Bank purchased a new position in shares of Fortrea in the 4th quarter valued at about $51,000. Osaic Holdings Inc. grew its position in Fortrea by 74.3% during the second quarter. Osaic Holdings Inc. now owns 6,844 shares of the company’s stock worth $38,000 after buying an additional 2,918 shares during the period. Public Employees Retirement System of Ohio increased its holdings in Fortrea by 37.9% in the third quarter. Public Employees Retirement System of Ohio now owns 8,386 shares of the company’s stock valued at $71,000 after buying an additional 2,303 shares in the last quarter. Acadian Asset Management LLC acquired a new stake in shares of Fortrea during the 1st quarter valued at approximately $65,000. Finally, Tower Research Capital LLC TRC lifted its position in shares of Fortrea by 137.0% during the 2nd quarter. Tower Research Capital LLC TRC now owns 8,713 shares of the company’s stock valued at $43,000 after acquiring an additional 5,036 shares during the period.

Key Fortrea News

Here are the key news stories impacting Fortrea this week:

• Positive Sentiment: Management said full‑year revenue and adjusted EBITDA were delivered in line with previously stated targets, and full‑year cost savings exceeded prior commitments — a signal that operational discipline is supporting cash flow and margin recovery. Fortrea Reports Fourth Quarter and Full-Year 2025 Results; Issues Full-Year 2026 Guidance
• Neutral Sentiment: Company issued FY‑2026 revenue guidance around $2.6–$2.7B (consensus ~ $2.7B). The range is roughly in line with expectations but the lower bound leaves little room for upside, so guidance is more cautiously received than outright positive. Fortrea Reports Fourth Quarter and Full-Year 2025 Results; Issues Full-Year 2026 Guidance
• Neutral Sentiment: Management commentary and the Q4 earnings call transcript provide detail on drivers and cost programs investors should review to judge sustainability of improvements. Read the call for color on backlog, client demand, and margin timing. Fortrea (FTRE) Q4 2025 Earnings Call Transcript Fortrea Holdings Inc. (FTRE) Q4 2025 Earnings Call Transcript
• Negative Sentiment: Q4 GAAP EPS of $0.09 missed consensus ($0.16) and declined from $0.18 a year ago—an unexpected shortfall that raises near‑term growth and profitability concerns. Fortrea Holdings Inc. (FTRE) Q4 Earnings and Revenues Lag Estimates
• Negative Sentiment: Revenue of $660.5M slightly missed analyst estimates (~$665.2M), signaling demand softness or timing shifts in client programs that could pressure near‑term top‑line recovery. Fortrea (NASDAQ:FTRE) Reports Sales Below Analyst Estimates In Q4 CY2025 Earnings

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on FTRE. Evercore set a $25.00 price objective on shares of Fortrea and gave the stock an “outperform” rating in a research report on Tuesday, January 6th. TD Cowen increased their target price on shares of Fortrea from $7.00 to $15.00 and gave the stock a “hold” rating in a research note on Thursday, January 22nd. Barclays set a $15.00 price target on Fortrea and gave the stock an “equal weight” rating in a report on Monday, December 15th. Weiss Ratings restated a “sell (d-)” rating on shares of Fortrea in a research report on Thursday, January 22nd. Finally, Wedbush set a $21.00 price objective on Fortrea in a research report on Thursday, December 11th. Four investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $16.75.

Fortrea Company Profile

Fortrea, Inc is a global contract development and manufacturing organization (CDMO) that provides integrated solutions for pharmaceutical and biotechnology companies. Established as a spin-off from Thermo Fisher Scientific’s Pharma Services business in October 2023, Fortrea leverages a legacy of scientific expertise and manufacturing scale to support drug development from early-stage research through commercial production. The company’s comprehensive offerings address the complex needs of both small-molecule and biologics programs, making it a single source for clients seeking to accelerate timelines and manage costs.

Fortrea’s core services encompass analytical and formulation development, process optimization, clinical and commercial manufacturing, and packaging services.